VW Settles Diesel Complaints in Canada

Volkswagen AG has reached a settlement in Canada to buy back or fix about 105,000 Audi and VW brand vehicles it sold in the country with 2.0-liter 4-cylinder diesel engines that were rigged to evade government emission laws.

The agreement is expected to cost several hundred million dollars. It covers Audi A3 small sedans from the 2010-2013 and 2015 model years, plus several VW models: Jetta sedans (2009-2015 model years), Jetta wagons (2009), Golf hatchbacks (2010-2013 and 2015), Golf wagons (2010-2015), Beetle coupes (2013-2015) and Passat midsize sedans (2012-2015).

All affected owners, including some who no longer own a targeted vehicle, will receive cash payments between C$2,550 and C$8,000 ($1,900-$5,900). Many also will have the option of selling their cars back to VW, trading in the vehicle against the purchase of a new model or keeping the vehicle, having it modified to meet pollution standards.

The class-action settlement is not an admission of liability by VW, and the terms don’t apply to VW’s legal or regulatory exposure outside Canada. Details are available at www.vwcanadasettlement.ca.

Separately, VW agreed to pay C$15 million ($11 million) in fines for falsely advertising the cheater diesels it sold in Canada as “clean” diesels.